121 T.C. No. 6
UNITED STATES TAX COURT
CHARLOTTE’S OFFICE BOUTIQUE, INC., Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 5077-01. Filed August 4, 2003.
P is a C corporation owned equally by O and her
husband. P petitioned the Court under sec. 7436(a),
I.R.C., to redetermine R’s determination that P was
liable for unreported 1995 through 1998 employment
taxes and additions to tax under secs. 6651(a)(1) and
6656, I.R.C. That determination resulted from R’s
determination that O received “wages” in the form of
payments which P made to O primarily as “royalties”
and, for 1995 and 1996, that P also had “Other Workers”
who received “wages”. R concedes his determination as
to the other workers and moves the Court to dismiss
this case for lack of jurisdiction as to 1996 through
1998. The parties agree that, during those years, O
was P’s employee as to other payments which O received
from P as wages. Held: The Court has jurisdiction over
all of the petitioned years in that R has determined
contrary to P’s audit and litigating position that:
(1) O received the disputed amounts as wages and
(2) P is liable for the payment of employment taxes
under subtitle C as to those disputed amounts. As to
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